Environmental taxation and regional inequality in China

J 2019

Environmental taxation and regional inequality in China

WANG, Jingxu; Jintai LIN; Kuishuang FENG; Peng LIU; Mingxi DU et. al.

Basic information

Original name

Environmental taxation and regional inequality in China

Authors

WANG, Jingxu (156 China); Jintai LIN (156 China); Kuishuang FENG (840 United States of America); Peng LIU (156 China); Mingxi DU (156 China); Ruijing NI (156 China); Lulu CHEN (156 China); Hao KONG (156 China); Hongjian WENG (156 China); Mengyao LIU (156 China); Giovanni BAIOCCHI (840 United States of America); Yu ZHAO (156 China); Zhifu MI (826 United Kingdom of Great Britain and Northern Ireland); Jing CAO (156 China) and Klaus HUBACEK (40 Austria, belonging to the institution)

Edition

Science Bulletin, Amsterdan, Elsevier, 2019, 2095-9273

Other information

Language

English

Type of outcome

Article in a journal

Field of Study

50704 Environmental sciences

Country of publisher

Netherlands

Confidentiality degree

is not subject to a state or trade secret

References:

article (Science direct)

Impact factor

Impact factor: 9.511

RIV identification code

RIV/00216224:14230/19:00108302

Organization unit

Faculty of Social Studies

DOI

https://doi.org/10.1016/j.scib.2019.09.017

UT WoS

000497954900010

EID Scopus

2-s2.0-85073835656

Keywords in English

Environmental taxation; Inequality; China; Input-output analysis; Levy mechanisms; Air pollution

Abstract

In the original language

In order to combat environmental pollution, China enacted the Environmental Protection Tax Law in early 2018. Yet the impacts of the environmental tax on individual regions with different socioeconomic statuses, which are crucial for social justice and public acceptance, remain unclear. Based on a Multi-Regional Input-Output (MRIO) table and a nationally regulated tax payment calculation method, this study analyzes the distributional impacts of an environmental tax based upon province's consumption from both inter-provincial and rural-urban aspects. The national tax revenue based on the current levy mechanism is estimated to be only one seventh of the economic loss from premature mortality caused by ambient particulate matter (PM2.5). The taxation may slightly alleviate urban-rural inequality but may not be helpful with reducing inter-provincial inequality. We further analyze two alternative levy mechanisms. If each province imposes taxes to products it consumes (rather than produces, as in the current mechanism), with the tax rate linearly dependent on its per capita consumption expenditure, this would moderately increase the national tax revenue and significantly reduce inter-provincial inequality. To better compensate for the economic costs of air pollution and reduce regional inequality, it would be beneficial to increase the tax rate nationwide and implement a levy mechanism based on provincially differentiated levels of consumption and economic status.

Links

GA16-17978S, research and development project

Name: Zranitelnost a ekonomicko-energetický nexus v odvětvích hospodářství - historická, Input-Output a CGE analýza (Acronym: VE2NEX)

Investor: Czech Science Foundation

Cite

WANG, Jingxu; Jintai LIN; Kuishuang FENG; Peng LIU; Mingxi DU; Ruijing NI; Lulu CHEN; Hao KONG; Hongjian WENG; Mengyao LIU; Giovanni BAIOCCHI; Yu ZHAO; Zhifu MI; Jing CAO and Klaus HUBACEK. Environmental taxation and regional inequality in China. Science Bulletin. Amsterdan: Elsevier, 2019, vol. 64, No 22, p. 1691-1699. ISSN 2095-9273. Available from: https://doi.org/10.1016/j.scib.2019.09.017.

@article{1650876,
   author = {Wang, Jingxu and Lin, Jintai and Feng, Kuishuang and Liu, Peng and Du, Mingxi and Ni, Ruijing and Chen, Lulu and Kong, Hao and Weng, Hongjian and Liu, Mengyao and Baiocchi, Giovanni and Zhao, Yu and Mi, Zhifu and Cao, Jing and Hubacek, Klaus},
   article_location = {Amsterdan},
   article_number = {22},
   doi = {https://doi.org/10.1016/j.scib.2019.09.017},
   keywords = {Environmental taxation; Inequality; China; Input-output analysis; Levy mechanisms; Air pollution},
   language = {eng},
   issn = {2095-9273},
   journal = {Science Bulletin},
   title = {Environmental taxation and regional inequality in China},
   url = {https://www.sciencedirect.com/science/article/pii/S2095927319305584},
   volume = {64},
   year = {2019}
}

TY  - JOUR
ID  - 1650876
AU  - Wang, Jingxu - Lin, Jintai - Feng, Kuishuang - Liu, Peng - Du, Mingxi - Ni, Ruijing - Chen, Lulu - Kong, Hao - Weng, Hongjian - Liu, Mengyao - Baiocchi, Giovanni - Zhao, Yu - Mi, Zhifu - Cao, Jing - Hubacek, Klaus
PY  - 2019
TI  - Environmental taxation and regional inequality in China
JF  - Science Bulletin
VL  - 64
IS  - 22
SP  - 1691-1699
EP  - 1691-1699
PB  - Elsevier
SN  - 20959273
KW  - Environmental taxation
KW  - Inequality
KW  - China
KW  - Input-output analysis
KW  - Levy mechanisms
KW  - Air pollution
UR  - https://www.sciencedirect.com/science/article/pii/S2095927319305584
L2  - https://www.sciencedirect.com/science/article/pii/S2095927319305584
N2  - In order to combat environmental pollution, China enacted the Environmental Protection Tax Law in early 2018. Yet the impacts of the environmental tax on individual regions with different socioeconomic statuses, which are crucial for social justice and public acceptance, remain unclear. Based on a Multi-Regional Input-Output (MRIO) table and a nationally regulated tax payment calculation method, this study analyzes the distributional impacts of an environmental tax based upon province's consumption from both inter-provincial and rural-urban aspects. The national tax revenue based on the current levy mechanism is estimated to be only one seventh of the economic loss from premature mortality caused by ambient particulate matter (PM2.5). The taxation may slightly alleviate urban-rural inequality but may not be helpful with reducing inter-provincial inequality. We further analyze two alternative levy mechanisms. If each province imposes taxes to products it consumes (rather than produces, as in the current mechanism), with the tax rate linearly dependent on its per capita consumption expenditure, this would moderately increase the national tax revenue and significantly reduce inter-provincial inequality. To better compensate for the economic costs of air pollution and reduce regional inequality, it would be beneficial to increase the tax rate nationwide and implement a levy mechanism based on provincially differentiated levels of consumption and economic status.
ER  -

WANG, Jingxu; Jintai LIN; Kuishuang FENG; Peng LIU; Mingxi DU; Ruijing NI; Lulu CHEN; Hao KONG; Hongjian WENG; Mengyao LIU; Giovanni BAIOCCHI; Yu ZHAO; Zhifu MI; Jing CAO and Klaus HUBACEK. Environmental taxation and regional inequality in China. \textit{Science Bulletin}. Amsterdan: Elsevier, 2019, vol.~64, No~22, p.~1691-1699. ISSN~2095-9273. Available from: https://doi.org/10.1016/j.scib.2019.09.017.

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